Financial Position - As of March 31, 2023, total assets amounted to CNY 4,441,813,069.33, a slight decrease from CNY 4,450,143,073.58 at the beginning of the year[11][13] - Current assets totaled CNY 2,854,466,023.79, down from CNY 2,887,529,673.50 at the start of the year, reflecting a decrease of approximately 1.14%[11][13] - The company's cash and cash equivalents were CNY 917,783,554.78, down from CNY 1,012,095,902.62, representing a decline of about 9.3%[11][13] - Total liabilities decreased to CNY 987,341,846.14 from CNY 1,111,480,085.28, a reduction of approximately 11.1%[13] - The company's equity attributable to shareholders increased to CNY 3,447,282,944.71 from CNY 3,333,942,681.91, reflecting a growth of about 3.4%[13] - Long-term borrowings stood at CNY 250,355,958.32, slightly down from CNY 260,483,819.39, indicating a decrease of approximately 4.3%[13] - The total liabilities to equity ratio improved to approximately 28.6%, down from 33.2%, indicating a stronger financial position[13] Revenue and Profitability - The company's operating revenue for Q1 2023 was ¥412,451,580.55, representing a 28.66% increase compared to ¥320,569,730.61 in the same period last year[19] - Net profit attributable to shareholders was ¥117,967,890.06, up 78.48% from ¥66,096,891.76 year-on-year[19] - The net profit after deducting non-recurring gains and losses was ¥101,834,483.80, a 56.55% increase from ¥65,049,983.51 in the previous year[19] - Basic and diluted earnings per share increased to ¥0.13, up 44.44% from ¥0.09 in the previous year[19] - The total comprehensive income for the period reached RMB 115,808,234.89, compared to RMB 62,102,896.61 in the previous period, reflecting a significant increase[35] - Basic and diluted earnings per share both improved to RMB 0.13 from RMB 0.09 in the previous period, indicating a growth of 44.44%[35] Cash Flow - The company reported a significant decline in cash flow from operating activities, with a net outflow of ¥23,147,232.72 compared to a net inflow of ¥83,902,633.06 in the same period last year, marking a decrease of 127.59%[19] - The net cash flow from operating activities was negative at RMB -23,147,232.72, a decline from a positive RMB 83,902,633.06 in the previous period[37] - The net cash flow from investing activities was RMB 52,334,870.39, a decrease from RMB 87,727,947.20 in the previous period[37] - The total cash and cash equivalents at the end of the period were RMB 879,023,113.33, down from RMB 1,108,631,873.44 at the end of the previous period[37] Accounts Receivable and Inventory - Accounts receivable increased to CNY 738,966,015.04 from CNY 525,956,419.42, marking a significant rise of approximately 40.5%[11][13] - Inventory levels rose to CNY 328,816,674.93, compared to CNY 306,046,015.32, indicating an increase of about 7.4%[12][13] - The company reported a significant increase in accounts receivable, which rose by 40.50% to ¥73,896.60 from ¥52,595.64, attributed to increased sales revenue[21] Government Subsidies and Other Income - The company received government subsidies amounting to RMB 19,015,333.63, primarily from supportive funds during the period[38] - Other income surged to ¥1,933.56 million, a substantial increase of ¥1,847.29 million or 2141.29%, primarily from government subsidies received[50] Financial Expenses and Taxation - Financial expenses decreased by ¥208.53 million or 34.57% to ¥394.66 million, mainly due to a reduction in interest-bearing liabilities[50] - Income tax expenses rose by ¥842.90 million or 75.02% to ¥1,966.45 million, driven by an increase in total profit[50] Investment Activities - The company’s long-term equity investments increased by 42.17% to ¥10,114.75 from ¥7,114.75, primarily due to additional investments in a joint venture[21] - Cash paid for fixed assets and other long-term assets rose by ¥1,167.28 million or 156.32% to ¥1,914.00 million, mainly for power station investments[50] Audit Status - The company has not undergone an audit for the first quarter report, indicating that the figures are preliminary[37]

Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15% in 2022 [26]. - The company's operating revenue for 2022 was ¥1,711,666,893.44, representing an increase of 11.70% compared to ¥1,532,380,375.86 in 2021 [34]. - The net profit attributable to shareholders for 2022 was ¥359,444,801.74, a decrease of 13.79% from ¥416,943,903.45 in 2021 [34]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥343,028,911.12, which is a significant increase of 90.56% compared to ¥180,008,172.30 in 2021 [34]. - The net cash flow from operating activities for 2022 was ¥496,300,837.80, up 76.18% from ¥281,701,373.19 in 2021 [34]. - The diluted earnings per share for 2022 was ¥0.42, down 23.64% from ¥0.55 in 2021 [34]. - The company's total assets at the end of 2022 were ¥4,450,143,073.58, an increase of 8.62% from ¥4,097,102,646.55 at the end of 2021 [34]. - The net assets attributable to shareholders at the end of 2022 were ¥3,333,942,681.91, reflecting a growth of 17.06% compared to ¥2,847,950,039.95 at the end of 2021 [34]. - The weighted average return on equity for 2022 was 11.01%, down from 15.07% in 2021, a decrease of 4.06% [34]. - The company reported a non-operating income of CNY 16,415,890.62 in 2022, a significant decrease from CNY 236,935,731.15 in 2021, primarily due to increased donations during the reporting period [152]. Shareholder Information - The company plans to distribute a cash dividend of 3.00 RMB per 10 shares to all shareholders, based on a total of 896,225,431 shares [10]. - The company issued a total of 136,986,301 new shares, increasing its total share capital from 759,239,130 shares to 896,225,431 shares [87]. - The company has a total of 137,000,663 shares after the recent changes, with 15.29% of the shares being limited sale condition shares [75]. - The company’s shareholding structure includes 759,224,693 unrestricted shares, accounting for 84.71% of the total [75]. - The number of shareholders holding ordinary shares increased to 49,626 by the end of the reporting period, up from 41,831 at the end of the previous month [92]. - Major shareholders include Shanghai Huaming Power Equipment Group Co., Ltd. with a 28.25% stake and Shanghai Huaming Power Development Co., Ltd. with a 15.28% stake [92]. - The company has committed to not reducing its shareholding in Huaming Equipment for six months following the completion of a private placement, which was successfully implemented [137]. Market Expansion and Strategy - The company is focusing on expanding its market presence in Latin America, particularly through its subsidiary Huaming Latino Americana [30]. - The company is actively pursuing mergers and acquisitions to strengthen its position in the power equipment sector [30]. - The company has successfully completed the acquisition of seven power transmission project companies in Brazil, enhancing its international portfolio [30]. - The company has identified potential in overseas markets and repair service businesses, which are currently underdeveloped [182]. - The company is actively involved in various international projects, including those in Indonesia and Mexico, indicating a strategy for market expansion [1]. - The company aims to compete with foreign brands in the domestic ultra-high voltage and extra-high voltage markets as well as overseas markets [199]. Research and Development - The company has initiated research and development for new power equipment technologies aimed at enhancing efficiency and sustainability [30]. - The total R&D investment has been consistently increasing, indicating a strong commitment to innovation and technology development [190]. - The company has successfully launched high-voltage transformer products, including the first domestic on-load tap changer used in a UHV transformer [187]. - The company is actively involved in the development of high-voltage tap changers, contributing to the national goal of carbon neutrality and benefiting from the growth in investment in renewable energy and related manufacturing sectors [155]. Operational Efficiency - The company has reported a positive net profit for the reporting period, but did not propose a cash dividend distribution plan [126]. - The company has a strong focus on cost control and process improvements as key drivers of performance [185]. - The company has upgraded its production capacity and industrial chain, including a renovation of nearly 16,000 square meters of factory space in Shanghai and the launch of a new machining workshop exceeding 15,000 square meters [199]. - The company has shifted its repair service strategy from a passive to an active marketing approach, resulting in significant growth in performance in the repair service business [163]. Environmental and Social Responsibility - The company is committed to improving its environmental and social responsibility practices as part of its long-term strategy [30]. - The company received government subsidies amounting to CNY 21,864,632.49 in 2022, compared to CNY 8,310,716.42 in 2021, indicating increased financial support from the government [149]. Industry Trends and Demand - The company’s core business, tap changers for transformers, benefits from the stable long-term growth rate of demand driven by macroeconomic development and increasing electricity consumption [155]. - The company’s market demand for tap changers is expected to grow due to ongoing investments in the power grid, particularly in ultra-high voltage projects [155]. - The government’s action plans emphasize the need for improved power grid infrastructure and increased capacity for renewable energy sources, which will drive demand for the company’s products [177]. - The cumulative installed capacity of wind power reached about 370 million kilowatts, with a year-on-year increase of 11.2% [175]. - The cumulative installed capacity of solar power reached approximately 390 million kilowatts, showing a year-on-year growth of 28.1% [175].